USCo, a U.S. corporation, purchases inventory from distributors within the U.S. and resells this inventory to customers outside the U.S., with title passing outside the U.S. Profit on the sale is $10,000. What is the sourcing of the USCo's inventory sales income?

Question

Quizplus · Accepted Answer

USCo's inventory sales income is sourced based on the location where title passes, which in this case is outside the U.S. Therefore, the entire $10,000 profit is considered foreign source income.

USCo, a US